4. Kirkland Signature Coffee: The Private Label Myth
Many shoppers harbor a deep-seated skepticism of store brands, also known as private labels. The assumption is that they are inferior knock-offs of the “real thing.” Kirkland Signature coffee is one of the best myth-busters on Costco’s shelves.
For years, many of the Kirkland Signature house blends, like the Medium Roast House Blend and the Espresso Blend, have been custom-roasted by the Starbucks Coffee Company. It says so right on the bag. You are getting coffee from a well-known national roaster, packaged in a Kirkland bag, at a fraction of the price you’d pay for a bag with the Starbucks logo.
This is a common practice. Many private label products are manufactured by the same companies that produce the famous national brands. They simply put a different label on it for retailers like Costco, Walmart, or Kroger. While the formulation might be slightly different in some cases, the quality is often identical or even superior. The lower price comes from the near-total lack of marketing and advertising costs, savings which are passed on to the consumer.
When comparing a 2.5-pound bag of Kirkland Signature House Blend coffee beans to a 12-ounce bag from a specialty roaster or national brand, the unit price difference is, once again, staggering. For the daily coffee drinker, the annual savings can easily add up to hundreds of dollars without any sacrifice in quality. The Federal Trade Commission, or FTC, regulates advertising claims to ensure they are not deceptive, but brand perception is a powerful force that often leads us to pay more for a name alone.
The lesson from Kirkland coffee is to challenge your own brand loyalty. Be a skeptical consumer. Turn the package over, look for clues about the manufacturer, and, most importantly, trust the unit price and your own taste. You may discover that the “store brand” is the smartest choice you can make.
